class notes: top five

Top five ways not to get ripped off buying a used car

By Joseph Neiman, BS ’08 CEO, ACV Auctions

After working both sides of auto sales—at his own used-car
dealership in Albany and then as a manager at a new-car dealership
in Buffalo—Joseph Neiman had a revelation. “Used-car
dealers want to buy inventory to replenish vehicles sold. New-car
dealers want to sell off customer trade-ins. And consumers want to
know what their old car is really worth. If we can create a tool
and a marketplace in real time, there’s a great opportunity
here.”

That opportunity became ACV Auctions, an app that allows dealers to buy
and sell used cars through 20-minute live, mobile auctions—an
innovation so transformative that it garnered the $1 million grand
prize for Neiman and his team in last year’s 43North
competition. In addition to eliminating the significant travel,
transport and staffing requirements of physical car auctions, the
app tells dealers and customers exactly how much a used car is
worth—meaning no more guesswork on how to price
trade-ins.

ACV Auctions is bringing a level of transparency to the
wholesale used-car market that it’s never seen before. But
the app, launched in 2015, is still young. Until it takes off on a
larger scale, we thought we’d ask Neiman for some pointers on
how to buy a used car off the lot without losing your shirt.

1. Get the facts
Make sure the dealer shows you a Carfax report. While it’s
not the word of God, it’s a good guide.

2. Be cool
If you’re impulsive, a dealer will realize it—slow down
a little. Take the time to check out all your options, and never
let a dealer know you’re in a hurry even if you are.

3. Make sure the tires are new
This means either the person who traded it in took good care of the
car or the dealer put on new tires. Either way, new tires increase
the value by at least $400. And as a general rule, always ask the
dealer what they did to recondition the car when they bought
it.

4. Do a thorough check, down to the smallest detail
Make sure the sunroof opens and closes, the locks work, the trunk
opens—inspect every switch and dial. Because once
you’re off the lot, that’s it. You’re stuck with
it.

5. Be a nice customer
Everyone wants to “win” when negotiating with a car
dealer, but buying a car isn’t a zero sum game. You’ll
get a lot further if you’re a decent person to do business
with. Be courteous, respectful and remember: Car salesmen are
people, too.